Cycle of emotions meaning

654 views

Published on

When is the greatest risk? Market highs? or Lows?

Published in: Economy & Finance, Business
  • Be the first to comment

  • Be the first to like this

Cycle of emotions meaning

  1. 1. Cycle of Emotions – when is the greatest risk? • Many may have seen this graphic in some form • But … what does it mean?
  2. 2. • Which has greatest potential return? • A to C? Or B to C? Future C A B
  3. 3. • Which has greatest potential return? • A to C? Or B to C? Future C A B The greatest price increase is from B to C (during Frightened)
  4. 4. • Which has greatest potential loss? • A to C? Or B to C? Future A B C
  5. 5. • Which has greatest potential loss? • A to C? Or B to C? Future A Note: There still may be a loss if you buy during “scary markets,” however, potential loss is less. Assumes broadly invested in indexed funds, not individual stocks. B The greatest price decrease is from A to C (during Elated) C
  6. 6. Cycle of Emotions – when is the greatest risk? • Many may have seen this graphic in some form • Now … you may see what it means when emotions are out of sync with potential returns

×